Warren K. Racusin, Chair of the firm’s Trusts & Estates practice, speaks with Private Wealth (a Financial Advisor publication) and Financial Planning about the potential impact of the proposed Build Back Better Act on a variety of estate planning vehicles, such as grantor trusts and irrevocable life insurance trusts.

In Private Wealth, Racusin explains that, in some instances, the proposed changes may result in higher costs to owners or heirs of a trust, thereby eliminating the core reason for creating the trust. Because the proposed changes cut in half the per-spouse gift and estate tax exemptions, Racusin says, “[I]nvestors need to be thinking about their options now.” He advises, “There will be no one-size-fits-all solution to the tax options once the bill is enacted, but individuals and their advisors need to be doing a risk-benefit analysis now.”

In Financial Planning, Racusin also addresses the challenges of wealth planning while the final details of the proposed law remain undetermined: “It’s kind of like an architect telling a builder, ‘hey, I need you to build this house right now, I don’t have the plan, but you need to start building it right away.’”